Categories: Business

Income Tax Department conducts search on premises of Chinese entities

Photo: FILE

Income Tax Department conducts search on premises of Chinese entities

new Delhi. The Income Tax Department raided the bases of Chinese citizens, companies and their Indian associates on charges of scamming crores of rupees under the guise of shell companies. It is alleged that Chinese citizens, with the help of some Indians, formed several shell companies by concealing their identity and with the help of these companies made illegal transactions of crores of rupees through hawala and money laundering. Shell companies are companies that are not formed for any purpose, but are actually used only to hide money, to make illegal transactions or to hide the original source of money.

According to the Income Tax Department, this search operation was carried out after getting a concrete information. According to the information, Chinese citizens and their Indian partners are involved in money laundering and hawala transactions with the help of shell companies. Based on this information, the department conducted raids at 24 locations of retail shops, bank officers, chartered accountants and traders in Delhi, Ghaziabad and Gurugram. The raid revealed that Chinese people are running hawala and money laundering businesses in India along with bank officials, chartered accountants. Investigations revealed that Chinese citizens opened 40 bank accounts in shell companies. With the help of these bank accounts, Rs 1000 crore hawala business was done. At the same time, Chinese citizens also took a bogus advance of Rs 100 crore from shell companies through subsidiary companies, with the help of which retail showrooms were opened in India. The department has also found documents related to hawala in the search operation and evidence related to involvement of bank employees, CA in illegal activities.

This is the first major action on the ongoing illegal business of Chinese citizens living in India after the Indian government stopped the application of Chinese companies.

This post was published on August 12, 2020 1:27 am

Content Team

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